ACT 205 Spring 2018 - 2019 The Accounting Equation Neal decides to open a computer programming service which he names Microsoft. 1. On January 1, 2018, Neal invests $15,000 cash in the business. 2. Microsoft purchases computer equipment for $7,000 cash. 3. Microsoft purchases computer paper and other supplies for $1,600 from ABC Supply Company expected to last several months. ABC agrees to allow Microsoft to pay this bill in February. 4. Microsoft receives $1,200 cash from customers for programming services it has provided. 5. Microsoft receives a bill for $250 from the Daily News for advertising but postpones payment until a later date. 6. Microsoft provides $3,500 of programming services for customers. The company receives cash of $1,500 from customers, and bills the customers with the remaining balance. 7. Microsoft pays the following expenses in cash for January: rent $600, salaries of employees $900 and utilities $200. 8. Microsoft pays its $250 Daily News bill in cash. 9. Microsoft receives $600 in cash from customers who had been billed for services in transaction number 6. 10. Neal withdraws $1,300 in cash from the business for his personal use. Required: A. Show the effect of the above transactions on the accounting equation. Cash (asset) increased by $15,000; and Ray Neal’s Capital (owners equity) increased by $15,000 Sep. 2 Microsoft purchases computer equipment for $7,000 cash [Equipment (assets) increased by $7,000; and Cash (asset) decreased by $7,000] Sep. 3 Microsoft purchases for $1,600 from Acme Supply Company computer paper and other supplies expected to last several months. The purchase is made on account [Supplies (assets) increased by $1,600; and Accounts Payable (Liability) increased by $1,600] Sep. 10 Microsoft receives $1,200 cash from customers for programming services it has provided[Cash (assets) increased by $1,200; and Service Revenue (revenue) increased by $1,200] Sep. 15 Microsoft receives a bill for $250 from the Daily News for advertising but postpones payment until a later date[Advertising Expense (expense) increased by $250; and Accounts Payable (liability) increased by $250] Sep. 20 Microsoft provides $3,500 of programming services for customers. The company receives cash of $1,500 from customers, and it bills the balance of $2,000 on account [Cash (assets) increased by $1,500; Accounts Receivable (asset) increased by $2,000; and Service Revenue (revenue) increased by $3,500] Sep. 25 Microsoft pays the following expenses in cash for September: store rent $600, salaries of employees $900 and utilities $200[Rent Expense, Salaries Expense, Utility Expense (expenses) increased by $600, $900, and $200 respectively; and Cash (asset) decreased by $1,700] Sep. 27 Microsoft pays its $250 Daily News bill in cash [Accounts Payable (liability) decreased by $250; and Cash (asset) decreased by $250 Sep. 28 Microsoft receives $600 in cash from customers who had been billed for services [in Transaction Sep. 20] Sep. 30 Ray Neal withdraws $1,300 in cash from the business for his personal use[Cash (asset) decreased by $1,300; and Ray Neal’s Drawings (owners equity) decreased by $1,300] B. Prepare the financial statements of Microsoft on January 31, 2018. • Income Statement • Statement of Owner’s Equity • Balance Sheet Assets = Liabilities + owner's Equity Cash +Equipment +Supplies +Accounts Receivable = Accounts Payable +Capital +Revenues -Expenses -withdrawal 1 +15,000 = +15,000 15,000 = 15,000 2 -7,000 +7,000 = 8,000 +7,000 = 15,000 3 +1,600 = +1,600 8,000 +7,000 +1,600 = 1,600 +15,000 4 +1,200 = +1,200 9,200 +7,000 +1,600 = 1,600 +15,000 +1,200 5 = +250 -250 9200 +7,000 +1,600 = 1,850 +15,000 +1,200 -250 6 +1,500 +2,000 = +3,500 10,700 +7,000 +1,600 +2,000 = 1,850 +15,000 +4,700 -250 7 -1,700 = -900 -600 -200 9,000 +7,000 +1,600 +2,000 = 1,850 +15,000 +4,700 -1,950 8 -250 = -250 8,750 +7,000 +1,600 +2,000 = 1,600 +15,000 +4,700 -1,950 9 +600 -600 = 9,350 +7,000 +1,600 +1,400 = 1,600 +15,000 +4,700 -1,950 10 -1300 = -1,300 8,050 +7,000 +1,600 +1,400 = 1,600 +15,000 +4,700 -1,950 -1,300

In 2007, France's GDP totaled $1.9 trillion and in 2006 GDP was $1.8 trillion. The total amount spent on new capital each year was $357 billion (2007) and $335 billion (2006). To calculate the amount of net investment in France for these years, you need to know:

A) The amount of financial capital available,

B) Saving,

C) The aggregated production function,

D) Depreciation.

Course: Theory of Interest (Actuarial Science)
Chapter: Yield Rates

Problem:

On 1/1/2006, Anthony deposits $90 into an investment account. On 4/1/2006 when the amount in the account is $x, a withdrawal of $W is made. The dollar-weighted rate of return is 20%. The time-weighted rate of return is 16%. Find W and x.
Answer: W = 24, x = $104.4

Execute SQL queries to get the countries in which the population has fallen from one year to the next, and the years in which it has occurred. Dump the output in the following format:

| country | year |  population | year | population |

| 1 | 2005 | 82500849 | 2006 | 82437995 |

| 1   | 2006 | 82437995 | 2007 |   82314906 |

(...)

And so on.

These are the SQL files:

Tables: pastebin.com/xw0j1NAM

Data: pastebin.com/hnpFT3QR

40% of all customers who enter a store will make a purchase. Suppose that 6 customers enter the store and that these customers make independent purchase decisions.

Round answers to four decimal places.

(1) Calculate the probability that exactly five customers make a purchase.

Probability               

(2) Calculate the probability that at least three customers make a purchase.

Probability             

(3) Calculate the probability that two or fewer customers make a purchase.

Probability             

(4) Calculate the probability that at least one customer makes a purchase.

Probability               

Customers arrive for service at a rate of 50 an hour and each server can deal with 25 customers an hour. There are three servers. If the customers time is valued at $20 an hour and server time costs $30 an hour, how much does the queue cost for an eight hour day?

Customers arrive for service at a rate of 50 an hour and each server can deal with 25 customers an hour. There are three servers. If the customers time is valued at $20 an hour and server time costs $30 an hour, how much does the queue cost for an eight hour day?

Elena filed her Form 1040, U.S. Individual Income Tax Return, for the 2006 taxable year on April 15, 2007. On May 15, 2007, the IRS assessed the $10,000 of tax reported by Elena on her 2006 Form 1040. Elena did not make any mistakes on her 2006 Form 1040; however, Elena did not pay the $10,000 tax liability reported on the Form 1040. On January 2, 2010, the IRS filed a Notice of Federal tax Lien against Elena, which attached to all Elena's property. On January 8, 2010, Elena requested for a Collection Due Process hearing before the IRS's Appeals Office. The Appeals Officer ruled against Elena, and Elena did not petition any court to review the Appeals Officer's determination. Assume that the Collection Due Process hearing process ended on February 10, 2010. Question: when did the statute of limitations on collection of Elena's 2006 income tax liability expire?

June 16, 2015.

April 15, 2017.

May 18, 2017,

June 17, 2017.

None of the above.

Go to the SEC Web site. Under ‘‘Filings & Forms (EDGAR),’’ click on ‘‘Search for Company Filings.’’ Click on ‘‘Company or Fund, etc.’’ Under Company Name, enter ‘‘Amazoncom Inc’’ (or under Ticker Symbol, enter ‘‘AMZN’’). Select the 10-K filed January 30, 2009.

1.What were the net sales for 2008, 2007, and 2006?

2.What were the gross profits for 2008, 2007, and 2006?

3.What were the income from operations for 2008, 2007, and 2006?

4.What were the interest expenses for 2008, 2007, and 2006?

Go to the SEC Web site. Under ‘‘Filings & Forms (EDGAR),’’ click on ‘‘Search for Company Filings.’’ Click on ‘‘Company or Fund, etc.’’ Under Company Name, enter ‘‘Kroger Co’’ (or under Ticker Symbol, enter ‘‘KR’’). Select the 10-K filed March 31, 2009.

1.Why is the goodwill account on the balance sheet?

2.Is there a goodwill impairment charge for 2008? (Review Note 2—Goodwill.)

3.Would a goodwill impairment charge be described as a noncash impairment?

Listed below are the 35 members of the Metro Toledo Automobile Dealers Association. We would like to estimate the mean revenue from dealer service departments. The members are identified by numbering them 00 through 34.

We want to select a random sample of five dealers. The random numbers are: 90, 94, 74, 16, 33, 68, 84, 16, 3, 34, 24, and 15. Which dealers would be included in the sample? (Enter the numbers as they appear.)

Using systematic random sampling, every sixth dealer is selected starting with the 05 dealer in the list. Which dealers are included in the sample?